25 Oct 2024
Xtep announced its 3Q24 operational results, with retail sales for its Xtep Core Brand recorded a MSD growth YoY, compared to a 10% YoY growth 2Q24. Offline sales recorded just a slight growth due to overall weak consumer sentiment during the period. Retail inventory turnover was at a healthy level of 4 months (2Q24: 4 months) while retail discount level remained at 25% (2Q24: 25%). We expect both the inventory turnover and retail discount will maintain at this healthy level in 4Q24. As for October MTD, with more supportive measures encouraging consumption from the government, both online and offline retail sales achieved a double-digit sales growth and expected sales in the double 11 festival period would have robust growth as well.